Whether considering forming a captive or redomiciling an existing one, we make the process as smooth as possible through remaining accessible, transparent, and by encouraging open and ongoing communication.

While we recommend that all companies interested in forming or redomiciling a captive contact one of Vermont’s approved captive managers, if at any point you wish to speak with someone from our licensing team directly, please feel free to do so. Our regulators are always ready to help answer any questions you may have.

Forming and operating a captive

The initial process to form a captive in Vermont begins with five basic steps:


Identify your insurance/risk problem or opportunity.


Interview and select an approved Vermont captive management firm. Your captive manager will play a critical role in guiding you through the process. We recommend talking to managers that represent multiple domiciles so that you can find the one that best suits your needs.


Conduct a feasibility study to determine the pros and cons of captive formation, and explore domicile options that may be best suited for your captive needs.


Determine which captive type may be right for you and meet with the Vermont Captive licensing team to discuss your proposed captive.


Prepare and submit a captive application. For more information on Vermont’s specific application process, including required materials, contact us today.

Once licensed and established, ongoing management and operation will impact the success of the captive. Recognizing that a captive is a long-term risk management strategy, a successful captive should have the following key attributes:

  • A clearly defined purpose and business plan for sustainability
  • A dedication to operating the captive in a manner that ensures risks are well understood and mitigated, using reinsurance as needed
  • A well-defined underwriting approach
  • A commitment to long-term and transparent relationships with various service providers (such as captive managers, investment advisers and actuaries)
  • A thorough oversight process as provided by a captive manager within a stable and legislatively supported domicile

Captive fees in Vermont

Vermont’s licensing and actuarial fees are not only competitive, but our unique infrastructure, including in-house examiners, can save insureds valuable time, money, and resources over the course of the relationship.

Vermont Captive fees and premium tax rates are below. For more information, contact us today.

Vermont Captive Fees

Activity Related Fee
Initial department licensure
Initial department licensure (SPFI)
Actuarial application review
Actuarial application review (SPFI)
Annual license renewal due April 1
Annual license renewal (SPFI) due April 1

Vermont Premium Tax RateEffective 1/1/2004 and for premiums written in calendar year 2004 and thereafter

Millions of dollars Direct Premium Tax Rate Assumed Premiums Tax Rate
0-20 .38% .214%
20-40 .285% .143%
40-60 .19% .048%
60+ .072% .024%

Minimum tax is $7,500
Maximum tax is $200,000
*A tax credit of $5,000 is granted to new licensees in each of the first 2 years of operation.


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